I was thinking along the same lines - I am sure that this is EC-legal, but am also wary of future changes in Croatia that might make flagging boats there more expensive than originally presented. I'm in a perfect situation for this - an EU passport, residency outside of the EU, a UK flagged boat with no VAT paid. The difference between VAT this way and if I were to return to the UK on my current boat value is almost $100K!

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